Rainbow's Sapan Sees Big Changes
By MONICA HOGAN -- Multichannel News, 7/29/2001 8:00:00 PM
San Francisco — San Francisco— The introduction of digital content and interactive applications could reshape the television industry even more dramatically than the shift from broadcasting to cable has over the past 25 years, Rainbow Media Holdings Inc. president and CEO Josh Sapan said.
Sapan addressed the CTAM Summit here last Tuesday after accepting a Grand TAM award and a personal gift that recognized his passion for map collecting.
Later, he would use his interest in maps to illustrate the concept behind Rainbow's Sterling Digital Media venture, which is developing virtual channels to serve what Sapan called the "sub-niche" interests of hobbyists from photographers to bird watchers.
Sterling Digital will first develop content for Cablevision Systems Corp.'s digital platform, scheduled to launch this fall. It also intends to make the virtual channels available to other MSOs, Sapan said.
Sapan noted that Sterling was testing its content-on-demand model, which includes different cost structures, but was not yet ready to announce a specific number of channels or pricing package.
He said there would likely be a monthly price for each content category, following the subscription video-on-demand model, plus another monthly fee that would encompass all available virtual channels.
Sterling Digital will not be the service's name, but Sapan said it was too soon to announce what its brand would be.
"The availability of rich and editorially authoritative titles that serve something of deep interest to consumers will comfortably command a price" for cable operators, Sapan said.
Asked by WE: Women's Entertainment personality Debbie Allen whether changes in the cable industry would lead to higher prices for her as a consumer, Sapan replied, "The ideal solution is that it would feel and seem cheap, but you would be spending much more than ever before."
Sapan also told Allen that Rainbow's content partnership with Metro-Goldwyn-Mayer Inc. would come in handy as the industry moves from a world of 24/7 programming to a content-on-demand model.
In talking with reporters, Sapan said that operators and programmers must be careful that the interactive and on-demand applications they introduce offer a pleasant user experience.
"Getting it right early is important," Sapan said. "If it's not well done at first, momentum will be lost."
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